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44m Nigerians lack financial access, says CBN



The Central Bank of Nigeria (CBN) has recorded progress in financial inclusion rate with 52 percent of adult Nigerians having formal bank accounts.

However, 32 percent of the population remains excluded from the formal financial system.

At the Financial Literacy Fair commemorating the 2024 World Savings Day in Abuja, the CBN disclosed the strides and challenges in the nation’s financial inclusion landscape.

Ibrahim Yahaya, Acting Head of the Consumer Protection Department at CBN, said in 2023, 52 percent, or 54.2 million adult Nigerians have recognized bank accounts but an estimated 32 percent, or 33.9 million people, were excluded from the financial system entirely.

Yahaya further broke down the statistics, revealing that another five percent of the adult population falls within an “other formal” financial inclusion category, while 11 percent are informally included in the financial system.

Yahaya stressed the need to instill a culture of savings across all age groups, particularly among youths.

“Over time, savings have improved significantly,” Yahaya stated, “if you look at it from the deposit side. Deposits in the banking industry have been on the increase, but there are still events that may discourage people from saving. There is a persistent sentiment that income is never enough to meet immediate needs, which affects the ability to save,” he said.

To emphasise the importance of savings from an early age, school children were invited to participate in the World Savings Day event.

“The main objective of this day is to promote the importance of savings,” Yahaya explained. “By instilling a savings culture among young people, we aim to ensure that they grow up with financial discipline. Encouraging parents to promote this habit in their children can help address eventualities in the future.”

Yahaya noted that cultivating a habit of saving, even in small amounts, is crucial to preparing for life’s uncertainties. “Life is full of journeys,” he added, “and having savings provides a safety net for any issues that may arise. It’s essential to have a fallback in case of those eventualities.”

The CBN official also linked the practice of saving to broader economic benefits, noting that savings contribute to bank deposits, which in turn fuel lending to the real sector, a driver of economic growth. “What we have as deposits is what the banks use to lend out, especially to the real sector, which drives economic growth,” Yahaya said.

He encouraged Nigerians, particularly the youth, to make saving a habit, regardless of the economic environment. “If you wait to have plenty before you start saving, you may never do it,” he advised. “But if you take it as a habit, setting something aside, even in small amounts, you will see the benefits in the future.”

Addressing the challenges inflation poses to saving, Yahaya acknowledged that while inflation is particularly difficult in current times, maintaining a saving culture can serve as a buffer. “Inflation has been there, and I know it is more challenging these days. But if saving becomes part of a life attitude, it will help cushion the impact,” he added.

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